SunPower ‘B’ Shares Up 10%: Proposes Unifying Share Classes

By Tiernan Ray

As suggested by at least one analyst in recent months, solar energy provider SunPower (SPWRA) this afternoon said it would seek to join its Class A and Class B common stock into a single issue, a move that would require approval of shareholders at a special meeting scheduled for November 15th.

The new shares would take on the voting rights and other qualifications that the Class A shares currently enjoy. The company notes that energy giant Total SA (TOT), which holds 60% of the Class A shares, and a majority of the Class B, has already given its consent to the move.

SunPower has two classes of shares as a result of the fact that the B shares were originally owned by Cypress Semiconductor (CY) and were distributed to its shareholders in September of 2008.

Collins Stewart’s Dan Rieshad written back in mid-July that investors should consider the B shares, as it was likely in his view that the premium of A shares to B shares would narrow at some point as the B shares gained in price.

That’s certainly what’s happening this evening:

SunPower A shares are down 28 cents, or 2%, at $11.70 in late trading. The B shares are up 98 cents, or almost 10%, at $11.05.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.